#GBPJPY has recently rejected a key swing level.
But what will happen to the currency pair next?
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we will look at GBP/JPY as we see the market’s potential to drop a little bit lower.
Starting on the weekly timeframe, we can see that the price has come back into this previous structure level, around 1.41, where the price found resistance, support, resistance, and now retesting that structure area. If we go to the daily timeframe, we can see that we had a nice rejection, a nice bearish engulfing candle off that level.
The price is retesting the most traded level of last week, which is this 1.3988 area, this structure through here. Again, we can see the price has used this area multiple times over the last week or so, making this a nice strong level of support or resistance. Now, the price is hovering in at this place right now. We’ve rejected it several times already today and what we’d like to see is a strong confirmation. So I’d like to see the price push lower even take out and form fresh lows below this 1.3952 because again, the price has found some support here recently. If we can break through this level, we’ll be in a good position to start looking for short opportunities again on GBP/JPY.
So, GB Pound was on the strength and weakness chart this week as a potential reversal currency and the fact that we’ve hit this big weekly zone, we dropped below last week’s most traded level, and we’re struggling to break back above it. This suggests to me that we are going to see some further downsides. So, watching these two key levels, you can look for a rejection of the 1.3988 level or wait for the price to breakdown and head for this 1.3952 as the resistance level.
Thanks for watching this video update, and I’ll catch you soon.
The GBP/JPY has good potential for the week to come. If you’re still on the fence about buying GBP/JPY, you can give it a try at no risk with a free demo trading account from Blueberry Markets by clicking here.
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